South Korea’s state utility Korea Electric Power (Kepco) has been selected as preferred bidder to acquire stake in the Toshiba’s 3.4GW Moorside nuclear power plant planned to be built at Sellafield, West Cumbria, UK.
Over the next few months, Kepco plans to negotiate with Toshiba to acquire undisclosed share in NuGen.
Kepco expects to reach a deal in the first half of 2018 if negotiations run smoothly.
NuGen spokesman was quoted by Reuters as saying: “Toshiba has been engaged with multiple credible and capable parties who have expressed an interest in acquiring NuGen, further testimony of the attractiveness of the nuclear industry in the UK and an indication of the degree of foreign investment that is ready and willing to enter this market.”
The company said that the acquisition of stake will be subject to a number of factors, including satisfactory completion of negotiation with Toshiba.
It will also be subject to favorable outcome for a preliminary feasibility study to be conducted by the Korean government, and the approval by the UK government of the transaction.
The Moorside project is planned to feature three Westinghouse AP1000 pressurized water reactors (PWR), each with 1,154MWe nameplate capacity.
Expected to account for approximately 7% of the future electricity requirements in the country, the £10bn ($17bn) Moorside nuclear power plant is being developed by NuGeneration (NuGen), a joint venture between Toshiba with 60% stake and GDF SUEZ with 40% interest.
In June 2014, Toshiba bought a 50% stake in NuGen from the previous partner Spanish power firm Iberdrola and a 10% stake from GDF SUEZ.
NuGen spokesman said: “NuGen and its shareholder Toshiba are exploring a range of options for funding the Moorside project, which includes Toshiba selling some or all its shareholding in NuGen."
Image: Illustration of the Moorside nuclear power plant in the UK. Photo: © NuGeneration Limited.